Question: Refer to the data given in Exercise 15-19. Required: 1. Allocate the two support departments' costs to the two operating departments using the reciprocal method.

Refer to the data given in Exercise 15-19.

Required:
1. Allocate the two support departments' costs to the two operating departments using the reciprocal method. Use (a) linear equations and (b) repeated iterations.
2. Compare and explain differences in requirement 1 with those in requirement 1 of Exercise 15-19. Which method do you prefer? Why?

Home InsertPage Layout Formulas Dta Review View SUPPORT AS OPERATING GOVT CORP Total 3 Budgeted overhead costs before any 4 interdepartment cost allocations $600,000 $2,400,000$8,756,000 $12,452,000 $24,208,000 Support work supplied by AS 40% 35% 100% 25% 5 (budgeted head cou Support work supplied by IS 100% 10% 30% 6 eted computer time

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